The Money Glow

Have you ever wondered what your net worth is? You might hear about celebrities and billionaires having massive net worths, but the truth is—everyone has one, including you! Knowing your net worth is a great way to check in on your financial health and set future money goals.

What Is Net Worth?

In simple terms, your net worth is the difference between what you own (your assets) and what you owe (your liabilities). It’s like your financial report card—it shows whether you’re growing wealth over time or if you need to make adjustments.

How to Calculate Your Net Worth

The formula for net worth is straightforward:

Net Worth = Assets – Liabilities

Here’s how you can calculate it step by step:

Step 1: List Your Assets (What You Own)

These are things of value that you own, including:
✔️ Cash in your bank accounts
✔️ Investments (stocks, bonds, ETFs, retirement funds)
✔️ Property (your home, rental properties, land)
✔️ Vehicles (if they have resale value)
✔️ Personal valuables (jewelry, collectibles, etc.)

Add up all your assets to get a total.

Step 2: List Your Liabilities (What You Owe)

These are debts and financial obligations, such as:
❌ Mortgage balance
❌ Car loans
❌ Credit card debt
❌ Student loans
❌ Personal loans

Add up all your liabilities to get a total.

Step 3: Subtract Liabilities from Assets

Now, take your total assets and subtract your total liabilities. The result is your net worth!

Download our Net Worth Calculator directly from the Resources page to start tracking your finances.

What Does Your Net Worth Mean?

• Positive Net Worth: If your assets are greater than your liabilities, congrats! You’re building wealth.
• Negative Net Worth: If your liabilities are higher than your assets, don’t panic! It just means you need to focus on reducing debt and increasing savings.

How to Improve Your Net Worth

🔹 Pay off debts faster—start with high-interest debt like credit cards.
🔹 Save and invest consistently to grow your assets.
🔹 Avoid unnecessary loans or purchases that increase liabilities.
🔹 Track your net worth regularly to see your progress.

Why Should You Track Your Net Worth?

Tracking your net worth helps you see if you’re moving toward financial freedom or need to make changes. It’s like checking the scoreboard in a game—it shows where you stand and what you need to work on.

Now that you know how to calculate your net worth, give it a try! You might be surprised at where you stand, and from there, you can make smarter financial decisions for a better future. 💰🚀